Baltic index at over 1-year low as rates decline across segments

The Baltic Exchange's dry bulk sea freight index BBDI, which tracks rates for ships carrying dry bulk commodities, fell for a sixth straight session on Tuesday to an over one-year low as rates weakened across all vessel segments.

* The overall index BBDI, which factors in rates for capesize, panamax and supramax shipping vessels, dropped 29 points, or 3.03%, to 928 points - its lowest since June 2023.

* The Baltic index is expected to decrease in the lead up to the Chinese new year, as this is typically a period of weaker demand for the sector, said an economist at the Baltic and International Maritime Council (BIMCO).

* "We expect a weaker supply-demand balance in 2025 compared to 2024, especially if safety is restored in the Red Sea and ships are able to return."

* Companies around the world are not ready to return to the Red Sea trade route in the wake of a Gaza ceasefire deal because of uncertainty over whether Yemen's Houthis will continue to attack shipping, industry executives said.

* The capesize index (.BACI) slipped 43 points, or 3.24%, close to a two-week low of 1,284 points. While, average daily earnings for capesize vessels (.BATCA), which typically transport cargoes of 150,000 metric tons, such as iron ore and coal, lost $361 to $10,647.

* Prices of iron ore futures rose for a ninth straight session as U.S. President Donald Trump did not immediately impose tariffs on trading partners, but kept investors on edge with his tariff plans, which capped the gains.

* The panamax index (.BPNI) slipped 19 points to 874 points, lowest since February 2023. Average daily earnings for panamax vessels (.BPWT), which usually carry about 60,000-70,000 tons of coal or grain, dropped by $174 to $7,862.

* Among smaller vessels, the supramax index (.BSIS) was down 24 points at 703 points, its lowest in over a year. It fell for a 28th straight session.